Orange County Real Estate Market Report: July 2025 The Orange County real estate market in July 2025 continued to show signs of a shift toward a more balanced environment, with buyers gaining some lev

Orange County Real Estate Market Report: July 2025

The Orange County real estate market in July 2025 continued to show signs of a shift toward a more balanced environment, with buyers gaining some leverage while prices remained relatively stable. While the market is still considered a seller's market, key indicators suggest a cooling trend compared to the intense pace of previous years.

Key Takeaways:

• Median Sold Price: The median sold price for a home in Orange County was approximately $1,180,969 in July 2025, representing a 5.1% increase year-over-year.

• Inventory: Housing inventory saw a significant increase, with approximately 8,234 homes for sale in Orange County, a 3.9% increase from June 2025. This rise in inventory is a key factor in the market's shift.

• Time on Market: Homes are taking longer to sell. The average time a home spent on the market was 32 days, a substantial increase of 49.1% compared to July 2024.

• Market Dynamics: The market is transitioning from a "hot" seller's market to a more neutral environment. While prices are not dropping significantly, buyers are finding more negotiating power, as evidenced by 54.2% of homes selling below their asking price.

Price and Sales Trends

The median sold price of $1,180,969 shows continued appreciation, albeit at a slower pace than in previous years. The year-over-year growth of 5.1% suggests a stabilizing market rather than a rapidly appreciating one. The median price per square foot was reported at $676.

Sales volume remained steady, with approximately 1,774 homes sold or pending in July 2025, a modest 1.7% increase month-over-month.

Inventory and Market Time

The rise in active listings to over 8,000 homes provides buyers with more options and reduces the sense of urgency that has defined the market for years. This increase in supply, coupled with a more cautious buyer pool, has led to a noticeable increase in the average time homes spend on the market. The average of 32 days is a significant change from the rapid sales that were common in the recent past.

Market Conditions and Outlook

While the market is still technically a seller's market, the trend is moving toward a more balanced state. The rise in inventory and days on market indicates that sellers need to be more strategic with their pricing and home preparation to attract buyers. For buyers, this means more time to make decisions, a better selection of homes, and more opportunities for negotiation. However, it's important to note that a significant portion of homes (45.8%) still sold at or above the asking price, so a competitive market still exists for well-priced, desirable properties.